NEW YORK CITY, New York: As beauty shoppers increasingly discover, test, and buy products online, U.S. department stores are racing to reinvent themselves in an effort to stay relevant in a fiercely competitive market dominated by TikTok, Amazon, and specialty retailers.

Shoppers like Quinn Kelsey highlight the challenge. The 38-year-old Denver resident finds makeup ideas on social media rather than at in-store beauty counters, uses artificial intelligence to compare products and shades, and usually completes purchases online.

"I use Chat GPT as my personal beauty consultant," Kelsey said. "Department stores? I'll walk through one for the decor, but they've basically lost me unless I can get the same product-research experience there that I can get scrolling through my phone at home."

Once considered the authority on makeup and skincare, department stores began losing ground in the late 1990s, when Sephora and Ulta Beauty transformed cosmetics shopping into a self-service, try-it-yourself experience. Today, competition for a share of the $129 billion U.S. beauty and personal care market is even more intense, driven by e-commerce and social media.

Amazon is now the nation's largest online seller of beauty and personal care products, according to Euromonitor International, after gradually adding premium brands to its platform. Meanwhile, TikTok and Instagram have become significant sources of beauty advice, from influencer tutorials to dermatologist recommendations and tips on finding "dupes" for expensive products.

"Stores are more of the showroom, but the spark itself is happening in TikTok," said Jake Bjorseth, founder of Generation Z advertising agency Trndsttrs.

To compete, department stores are investing heavily in upgraded beauty floors designed to offer experiences that can't be replicated online. Macy's and Nordstrom have renovated flagship locations in New York to include more space, luxury brands, and technology-driven services. At Nordstrom, customers can book robot-applied eyelash extensions for $170.

The timing is deliberate. The holiday season accounts for about one-quarter of all U.S. prestige beauty sales, according to Circana.

More Reasons to Linger

Retailers are borrowing some of Sephora's self-service elements while trying to differentiate themselves through atmosphere and services. Macy's Herald Square redesign includes comfortable seating and skin analysis devices to support high-end product recommendations.

"This is the future of beauty," said Nicolette Bosco, Macy's vice president of beauty, referring to the interactive technology.

Macy's plans to redesign beauty departments in 40 additional stores. CEO Tony Spring said the goal is to make department stores feel more personal and accessible. "We're trying very hard to take the idea of a department store and make it intimate and friendly and convenient," he said.

Nordstrom's revamped Manhattan beauty floor includes areas to test tools such as LED light therapy masks, fragrance discovery machines, and expanded treatment spaces. Some locations now offer medical spa services such as Botox and dermal fillers priced from $575 to $1,050.

Competition Keeps Evolving

Sephora, which pioneered the DIY beauty shopping model, is updating its 720 North American stores, relocating service stations for privacy and rolling out faster checkout technology. Ulta is expanding services, adding ear piercing and testing robotic manicures, with plans to introduce robotic lash extensions next year.

Walmart has also moved upmarket, installing beauty counters in 100 stores this year.

Despite the pressure, department stores still see opportunity. After attending a fashion event at Nordstrom, freelance stylist Ivan Leon spent $537 on two Tom Ford fragrances inspired by a social media trend known as "fragrance layering."

"It's kind of cool when you combine two scents, and it makes something new," Leon said. "I think it helps the psyche and builds confidence."

Still, the numbers underscore the challenge. TikTok Shop is now the seventh-largest online beauty seller in the U.S., while Macy's and Nordstrom hold just 1 percent and less than 0.5 percent of online market share, respectively, both of which are declining, according to Euromonitor.